The Press and Journal (Inverness, Highlands, and Islands)
Tenant farm findings ‘incredible’
Claim of £69,000 annual investment by owners questioned by farmers’ group
Estate owners are investing an average of £69,000 a year on their tenanted farms and crofts, according to a survey by Scottish Land and Estates (SLE).
The responses came from 277 estates of all sizes across Scotland, of which 143 were involved in let farming.
This produced data on 1,538 farm tenancies – 23% of all farm tenancies in Scotland – covering a total area of 339,728 hectares (ha). In addition, data was collected on 1,223 croft tenancies with a total leased area of 45,292ha.
The 143 estates involved in let farming have an average of 11 tenants each with the average tenanted holding running to 221ha.
Their total annual expenditure amounted to £10.2m – primarily on repairs and capital costs - which according toSLEequatesto£26.58 per ha and an average annual expenditure per estate of £69,145.
Average income on each of the estates amounted to £ 101,422, with average rental income of £38.99 per ha with expenditure running at £26.58 per ha.
SLE said repairs, improvements and capital works accounted for £6.65m of the £10.2m expenditure, with staff, administration and in some cases insurance costs given as £3.5m.
The study found that while tenant farming is
“The figures demonstrate significant investment”
profitable for the majority of estates, the exception was very large estates of 20,000ha and above. According to SLE, on these larger estates earnings per hectare on tenanted farms are £25 and insufficient to cover average expenditure of £27 per ha.
“The research findings involve many of what would be regarded as the mainletting estates in Scotland, but also many more smaller estates which are involved in the letting of land,” said SLE chief executive Douglas McAdam.
“The figures clearly demonstrate that there is significant investment by estates and our members are willing to invest further if we can create a stable climate that encourages investment.”
He said members had warned that their continuing commitment to invest in their holdings was being jeopardised by the re-emergence of a potential absolute right to buy for tenants. “Itmustbe recognised that the issue is not one-dimensionalandthat tenants can invest too,” added Mr McAdam.
“Many farms are let on a full repairing basis with the responsibility for renewing fixed equipment falling to the tenant and where the rent is set accordingly.”
Past chairman of the Scottish Tenant Farmers Association (STFA), Angus McCall, last night described the figures as “quite incredible”.
“I meet these findings with total incredulity. They are totally at odds with a recent STFA survey where half of tenants responding said there had been no landlord investment on their farms for more than 10 years. The findings are contrary to feedback from our members,” he said.
Full results of the survey by Scotland’s Rural College (SRUC) and Rural Solutions, are set to be published next week.